Hard up households could boost their income by thousands of pounds each year through debt help scheme

A pioneering scheme offering debt and benefits advice in schools has seen low-income families boost their incomes by £500,000.

An estimated £23 billion of benefits goes unclaimed every year because of a lack of awareness and complicated application processes.

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This includes everything from people eligible for Universal Credit, but not claiming it, confusion around Personal Independence Payment (PIP), and people not taking up support with things like childcare costs and council tax.

As a result, the Money Matters pilot scheme was launched in seven Greater Manchester schools in low-income areas in 2022, which saw a full-time Financial Inclusion Officer (FIO) help families claim the benefits they are entitled to.

Now, more than 300 families are around £500,000 better off – an average of £1,634-a-year each – with one family seeing their income rise by a staggering £24,121-a-year.

A spokesperson for Kellogg’s, which set up Money Matters with nonprofit Resolve Poverty, said: “Through our Breakfast Club network, we saw the opportunity to help parents currently struggling on low incomes who were unknowingly entitled to far more support than they were getting and providing that help at school where families feel comfortable.

“There are millions going unclaimed in benefits meaning those who are entitled to it, and also most in need of it, could be struggling to get by.

“Helping parents to make sure they are getting the money they deserve impacts the whole family, putting the brakes on the growing number of children in poverty across the UK.”

Chief Executive of Resolve Poverty, Graham Whitham, said: “Our consistent presence at school events and activities, including parents’ evenings and coffee mornings, has been vital in helping families across the North West unlock the benefits they are entitled to.

“We look forward to seeing how we can further expand the programme to help even more families.”

One beneficiary of the scheme is Chris Chapman, 58, who was made redundant in January 2025 and quickly started to face financial struggles.

The single parent lives in Rochdale with his 16-year-old son, who is about to start attending a local college.

After the redundancy – which came when the household was already struggling with debt – Chris found finances impossible to manage.

But so far, with the help of Money Matters, he has so far secured expected gains of more than £12,000 and applications are being made for discretionary benefits, including PIP, which could boost this further.

He said: “I was made redundant having worked all my life in business development and client experience.

“By March 2025, we began to struggle to make ends meet on a monthly basis and had to make several cutbacks on clothing, food, gas, electricity and social activities.

“We do not have much family around us, however those we do would help with some groceries.

“This led me into depression, the only highlight being when my son represents Rochdale Mayfield Rugby League Club on a Saturday, leaving me feeling proud.

“The lack of money for even the basics creates some tension between us, I sometimes miss meals to provide things for my son.

“He’s also needed new rugby kit, new boots all year and I’ve not been able to replace them.

“I could feel myself getting more and more depressed, and going under slightly.

“I’d been a single parent for 10 years so nothing’s ever been easy, I’ve always been ready to fight mentally and push myself to succeed – but it felt like I was running out of traction.

“But my support worker from Money Matters was fantastic from the very first call, offering a listening ear with empathy and understanding.

“From there on I was introduced to food banks that helped, also to institutions that helped with gas and electricity and to debt counselling from Citizens Advice.

“Without Money Matters, I would have found it difficult to find and navigate the support out there for families such as myself and my son.”

The scheme was initially piloted in seven schools and has now supported families across 45 schools with discussions in place to roll it out in new settings.

One of the schools with the scheme already in place is Barton Clough Primary School in Manchester.

The school’s Assistant Headteacher, Jackie Crouch, said: “Money Matters has added an extra string to our pastoral bow, and in these times that matters.

“All too often it turns out that families are not receiving what they are entitled to.

“One family at our school is better off by £1,000 per month. Most of all we’ve seen pupils’ focus and concentration improve.

“It ought to be self-evident, but children are better able to learn when they are fed, wearing the correct uniform and unencumbered by the sorts of money worries that ought to be the preserve of parents.”